for display only
Big Blue Interactive The Corner Forum  
Back to the Corner

Archived Thread

NFT: Best way to find house's market value without an appraiser?

davek3698 : 10:50 am
Currently talking with a couple that is looking to sell their home FSBO. They came in with a price that might be high, even after omitting realtor commission. Is there a way/website that is good for this. Zillow? Trulia? The house in question is right next to a brand new development, so I fear those sites might not be taking the 25 years difference in age into consideration. Thanks…
they are all hit and miss  
gidiefor : Mod : 10:54 am : link
depending on public records - best bet is still an appraisal
I would think  
Johnny5 : 10:56 am : link
They have to look at houses that comp with theirs. Online is helpful to narrow it down, but really the way to do that is see what's on the market in the area, and go look at it.
if you think they are high  
gidiefor : Mod : 10:56 am : link
it would be worth $300 or $400 to use an appraisal as a negotiation

You really cannot rely on a website appraisal based on public records - especially with concerns like you have mentioned
Look for comparable  
pjcas18 : 10:56 am : link
houses in the same neighborhood or in the vicinity that have sold recently.

when you have an appraisal done, they look at the actual house, but also look for 3 to 4 comparisons.
Zillow and Trulia  
jv : 10:56 am : link
values are BS. No financial decisions should be based off of them. You'd be best off paying an appraiser. You'll need one anyways if you're getting a mortgage.

If you're looking for a quicker number just to develop an offer I'd look at recently sold homes in the same town that are similar to the house you're looking at.
appraisals are based on actual sales J5  
gidiefor : Mod : 10:57 am : link
asking prices are not indicative of market value
Zillow and Trulia both have a "Recently Sold"  
Section331 : 11:05 am : link
page, which allows you to type in an address to see if any homes nearby were sold recently.
One of the problems  
davek3698 : 11:10 am : link
is that the house in question is a bit unique. It is bigger than the rest in its development, and it has an acre+ where the others have less than a half. My lender told me it is really difficult to get a comparison for it due to those factors.
so then do a quick calc based on sq footage  
MetsAreBack : 11:28 am : link
so if other homes are selling at (making this up) $100 a foot... multiply that by this houses square footage.

Then add more money for what the incremental half acre (is it flat and usable) is worth to you
An appraisal isn't even the best way.  
Crispino : 11:32 am : link
I think best method is to get the best realtor in your area to do a market evaluation of the subject property.
The value is what two parties agree it is  
ron mexico : 11:32 am : link
meaning there is no such thing as actual value.

That said, the best method is comparable sales. If you are in NJ you can use the advanced search function in this data base to find comp sales in your town.

Link - ( New Window )
RE: One of the problems  
EricJ : 11:33 am : link
In comment 13409032 davek3698 said:
Quote:
is that the house in question is a bit unique. It is bigger than the rest in its development, and it has an acre+ where the others have less than a half. My lender told me it is really difficult to get a comparison for it due to those factors.


There are so many other factors. Meanwhile, here is what I would suggest. Have them put the house on FSBO and also Zillow as a for sale by owner. In less than a week at least one realtor will contact them to see about listing it. They can ask the realtor/s for a market analysis for the home. Something the realtors would do anyway before determining a price. That would really help to dial in the price.

I know it sounds like you are using the realtor but my suggestion is to let the realtors reach out to them first vs seek out a realtor just for the purpose of getting the market analysis. It is also a good way to get to know a few of them in the event that your friends want to list it down the road if they dont have any luck doing it on their own.
Colm comparisons are a component, but can never take into account...  
Crispino : 11:36 am : link
everything that goes into the true value of a property. No two properties are exactly alike. The house down the street with the same measurable doesn't necessarily have as pleasing a lot, or homes adjoining.
Comp.  
Crispino : 11:37 am : link
.
..  
Named Later : 12:16 pm : link
The old saying that a house is worth what a Buyer is willing to pay for it.....is only valid in an all Cash Sale. Once you get a Lender involved, an Appraisal is mandatory.

If you're seriously considering this purchase, find a local Appraiser who knows that neighborhood. The couple hundred bucks will be money well spent in the negotiations. Then you can turn that Appraisal over to the Bank's Appraiser for your financing. You're going to pay the Home Inspector at least that much, and all he'll come up with is a vague reference to Termites.
It depends  
kash94 : 1:08 pm : link
how exact a dollar figure you want to get. Carefully researched comps can get you in the ballpark figure but you'll need an appraiser if you are really focused on an exact figure + have a lender involved.

If you are looking at comps, key things to look for (if available) are:
1- Location (obviously)
2- Size (bedrooms, bathrooms, SF of house, SF of total lot with the yard)
3- Age of house
4- Any near by construction. This may lower value if it's going to be super noisy or busy
5- Date of trade (more recent the better obviously)
RE: appraisals are based on actual sales J5  
Johnny5 : 1:47 pm : link
In comment 13409012 gidiefor said:
Quote:
asking prices are not indicative of market value

Sure, of course, but (IMO) generally it's a good idea to comp directly to see what the direct competition is priced (and has sold) at.
Make them an offer you think is fair  
fbdad : 2:47 pm : link
You're never going to talk them down by "proving" their number is too high. If they think they can get more than you're offering, all the comp sheets in the world won't help you. If they say no, keep an eye on the house if you want it. If it sells quickly, then the sellers were right about their pricing. If it doesn't sell in a month or so, offer them again.
Back to the Corner